Twitter Inc (NYSE:TWTR) generated a higher click through rate than rival Facebook Inc (NASDAQ:FB), according to a report, though advertisers invested more money in the latter. Businesses across the globe trusted Facebook more than Twitter for posting their ads last year, but Twitter ad-clicks were higher than that of the social network giant.
The report stated, “Facebook’s relative maturity as a direct response channel, combined with these new ad offerings, explains much of the strategic thinking that drove advertisers to spend more with Facebook.”
Facebook’s massive user base a pull factor
A report from Resolution Media, a social advertising agency, tracked the social media activity of 20 clients that spent a total of $37 million on ads last year. It was found that businesses invested 127% more in Facebook, but a higher click-through rate was generated by Twitter.
The report suggested that there were several factors responsible for the social network’s higher spend levels. Cost of impressions and clicks are relatively low on Facebook compared to the micro blogging site. The low cost encourages marketers and advertisers to invest more in Facebook Inc (NASDAQ:FB). Also, Facebook’s new successful ad campaigns and a new alpha and beta advertising features attracted more advertisers towards the platform.
Additionally, the massive reach and supply of the advertising inventory offered by Facebook was also mentioned as a reason. The report said that it is simple to understand why investors spend more than double on Facebook compared to that of Twitter Inc (NYSE:TWTR): Facebook has a user base of 1.2 billion compared to only 241 million for Twitter.
Twitter leads, industry-wise
In terms of growth in spending, advertisers are now investing more in Twitter. From the third quarter to the fourth quarter, business spend on Twitter Inc (NYSE:TWTR) increased by 71% compared to just 27% on Facebook. Twitter again leads if we consider industry-wide data. Retailers spent 257% more on Twitter ads against 94% more on Facebook whereas Businesses and consumer services spent 361% more on Twitter, compared to 211% more on Facebook.
Last year, a report from Forrester published a similar finding, where it suggested that advertisers leave Facebook Inc (NASDAQ:FB) and search for other marketing opportunities. The report took everyone by surprise while claiming that Facebook creates less business value compared to any other digital marketing platform.